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SoFi CEO Tells Cramer Millennials Are Buying Sub-$10 Stocks

SoFi CEO Tells Cramer Millennials Are Buying Sub-$10 Stocks

SoFi, an online personal finance company that mostly targets millennials, launched a new platform in early 2019 that allows clients to buy and sell stocks.

One would assume that millennial investors are only interested in FANG stocks, but that isn't at all the case, SoFi CEO Anthony Noto told CNBC's Jim Cramer.

What Happened

Young and new investors on SoFi's platform were mostly interested in buying stocks trading below $10 per share, the ex-Twitter Inc (NYSE: TWTR) COO said during a Thursday interview on "Mad Money."

Young investors are more interested in using "small amount of money" to accumulate a position that doesn't cost very much, Noto said. 

In response, SoFi launched two ETFs that give its customers access to "broad-based diversification" that can be bought for around $10 per share, the CEO said. 

The SoFi Select 500 ETF gives investors exposure to the 500 largest U.S. companies, while the SoFi Next 500 offers exposure to mid-cap companies.

Why It's Important

SoFi's ETFs give investors exposure to a larger portfolio of stocks that includes familiar companies like those in the gig economy sector, Noto said. It also gives investors a chance to "get into the market and learn," he said. 

Noto said it's "imperative" that young people start investing as soon as possible.

Investors who don't put away money in their 20s will really need to "catch up later on" in life," he said. 

What's Next

Investors hoping to invest in SoFi itself may need to wait a while: Noto told Cramer his main focus is to build "great products first," and "someday" an initial public offering "may come."

Related Links:

SoFi Doubles ETF Suite With Gig Economy, Growth Funds

Zero-Fee ETFs Are Here


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